Particle.news
Download on the App Store
4 ARTICLES
·
4w ago

Chancellor Reeves Faces Tough Choices on £100 Billion Investment Plan

With only £20–50 billion in net new funds, the UK government must prioritise health and housing infrastructure in its June spending review.

Britain's Chancellor of the Exchequer Rachel Reeves speaks during a discussion entitled "Debate on the Global Economy: Growth and Resilience in an Uncertain World," during the 2025 annual IMF/World Bank Spring Meetings in Washington, D.C., U.S., April 24, 2025. REUTERS/Elizabeth Frantz/File Photo
Rachel Reeves could be left with as little as £20 million to allocate over five years

Overview

  • Chancellor Rachel Reeves announced a £100 billion infrastructure investment boost in October 2024, but analyses show much of it will be absorbed by maintaining existing budgets.
  • The Resolution Foundation estimates that only £20–50 billion will be available for new capital projects over five years, requiring difficult trade-offs.
  • Health and housing are recommended as top priorities, with the NHS facing a £14 billion maintenance backlog and schools needing £11 billion in repairs.
  • Secondary priorities include prisons and regional transport, with a focus on addressing acute infrastructure needs in major cities to support economic growth.
  • The June 2025 spending review will determine allocations, as the government seeks to balance modernisation goals with constrained resources.